The St. Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of St. Lucia. The blood bank has just finished its operations for September, which was a particularly busy month due to a powerful hurricane that hit neighboring islands causing many injuries. The hurricane largely bypassed St. Lucia, but residents of St. Lucia willingly donated their blood to help people on other islands. As a consequence, the blood bank collected and processed over 20% more blood than had been originally planned for the month.

A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears below. Continued support from the government depends on the blood bank's ability to demonstrate control over its costs.

St. Lucia Blood Bank

Cost Control Report

For the Month Ended September 30 Actual Results Planning Budget Variances Liters of blood collected 980 800 Medical supplies $ 11,508 $ 9,360 $ 2,148 U Lab tests 13,824 11,640 2,184 U Equipment depreciation 1,400 1,200 200 U Rent 1,300 1,300 0 Utilities 348 320 28 U Administration 14,995 14,820 175 U Total expense $ 43,375 $ 38,640 $ 4,735 U

The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergency on the neighboring islands. He also pointed out that the additional costs had been fully covered by payments from grateful recipients on the other islands. The government official who prepared the report countered that all of the figures had been submitted by the blood bank to the government; he was just pointing out that actual costs were a lot higher than promised in the budget.

The following cost formulas were used to construct the planning budget:

Cost Formulas Medical supplies $11.70q Lab tests $14.55q Equipment depreciation $1,200 Rent $1,300 Utilities $320 Administration $1.90q

Required:

1. Complete the performance report for September using the flexible budget approach. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations and round your final answers to nearest whole dollar.)

The St. Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of St. Lucia. The blood bank has just finished its operations for September, which was a particularly busy month due to a powerful hurricane that hit neighboring islands causing many injuries. The hurricane largely bypassed St. Lucia, but residents of St. Lucia willingly donated their blood to help people on other islands. As a consequence, the blood bank collected and processed over 20% more blood than had been originally planned for the month. A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears below. Continued support from the government depends on the blood bank's ability to demonstrate control over its costs. St. Lucia Blood Bank Cost Control Report For the Month Ended September 30 Actual Planning Results Budget Variances Liters of blood collected 980 800 Medical supplies $ 11,508 9,360 $ 2,148 U Lab tests 13,824 11,640 2,184 Equipment depreciation 1,400 1,200 200 O Rent 1300 1.300 0 Utilities 348 320 28 U Administration 14,995 14,820 175 U Total expense $ 43,375 $ 38,640 $ 4,735 U The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergency on the neighboring islands. He also pointed out that the additional costs had been fully covered by payments from grateful recipients on the other islands. The government official who prepared the report countered that all of the figures had been submitted by the blood bank to the government; he was just pointing out that actual costs were a lot higher than promised in the budget. The following cost formulas were used to construct the planning budget: Cost Formulas Medical supplies $11.70q Lab tests $14.55g Equipment depreciation $1,200 Rent $1,300 Utilities $320 Administration $1.90q Required: 1. Complete the performance report for September using the flexible budget approach. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations and round your final answers to nearest whole dollar.) St. Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Actual Flexible Planning Results Spending Variances Budget Activity Variances Budget Medical supplies $ 11,508 $ 9,360 Lab tests 13,824 1,640 Equipment depreciation 1,400 1,200 Rent 1,300 1,300 Utilities 348 320 Administration 14,995 14,820 Total expense $ 43,375 38,640